Mortgage Rate Update January 6, 2012

Posted on by Evan in Rate Update

Mortgage rates are unchanged again today.

Just like yesterday we got better-than-expected US employment data but investors are not reacting to this news that would ordinarily pressure mortgage rates higher.

According to the Bureau of Labor Statistics survey the US economy added 200,000 new jobs last month taking the unemployment rate down to 8.5%.

INTEREST RATES ARE IGNORING POSITIVE JOB GROWTH THIS AM

For the year. 1.6 million jobs were added in 2011 which is the best result since 2006.  However, we’re still a far cry form recovering the 8.75 million jobs lost since the recession “ended” in 2009.

Mortgage rates continue to take direction form developments in Europe.  When sentiment turns positive rates rise and vice versa.  Albeit, interest rates have traded within a very narrow range for weeks now.

Earlier today the European Central Bank intervened into the debt markets and supported Spanish & Italian government bonds.  Yields on those countries debt rose as investors grew more concerned about the health of the financial system.

New day same story.

Current Outlook: neutral